UK Business Law and Governance

The assignment discusses various laws and policies in the UK that are relevant to businesses operating in the country. It highlights the importance of government involvement in law-making and explores the impact of Brexit on competition law. The report also provides solutions for companies facing issues related to breach of contract, such as Busy Bee, and offers recommendations for MRs Singh.

Business Law

Contents
INTRODUCTION.....................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1 Sources of Law and laws that organization need to follow.........................................................4
P2 Role of government in law making and the way statutory common law is applied Explaining in
justice court.......................................................................................................................................5
M1 Evaluate the effectiveness of legal system in terms of recent reforms and developments........6
TASK 2.......................................................................................................................................................6
P3 1. Factors that are required to be considered when naming company.........................................6
M2 Differentiating and analyzing the potential impact of regulations, legislations and standards..7
P3 2. Employment Rights.................................................................................................................7
P3 Right and obligation of consumer under Consumer Act.............................................................7
TASK 3.......................................................................................................................................................8
P4 Termination of contract, recuse from insolvency and liquidation.............................................8
P5 Validation for use of appropriate legal solutions in both above cases.........................................9
TASK 4.....................................................................................................................................................10
P6 Advising AFG Oil Organisation about their legal rights to resolve the dispute at Arbitration. 10
CONCLUSION........................................................................................................................................10
REFERENCES.........................................................................................................................................12

INTRODUCTION
Business law is the body of law that governs the business and it is considered as part of civil
law. Business law also deals with issues of public as well as private law. Commercial law controls
corporate contracts and solves various problems related to hiring practices, manufacture of consumers
Products (Fingleton, Fletcher and et.al, 2017). In UK commercial law is field of both congress under its
power to control interstate trade and state under police power.
The study has focus on explaining the different sources of that are required by organization need
to comply in order to continue their business successfully. Report emphasizes on determining the role
of government in law making. The report will include detail about various law in UK and their impact
on business. Purpose of the project is to provide legal solution to business problems.
TASK 1
P1 Sources of Law and laws that organization need to follow
UK consists of Mainly four countries England, Wales, Scotland and Northern Ireland. The
Different law frame by UK government can be applied to whole UK while some legislation may be
applicable to only some part of country.
These are several laws that are required by companies in order to continue their business
operation successfully and increasing their sustainability.
United Kingdom company law-this law was designed under the Companies Act 2006 and governed by
insolvency Act 1986.According to this law organization that are operating their business in UK cannot
employ more people and increase their profits and revenues.
The small business and employment Act-These was launched as a new regime for organization that are
operating in UK. Limited Partnership act was introducing in order to have have control on various
activities that are being conducted by partnership firm (Jones, 2017) The significant employment that
are required by business to follow include:
Health and safety at work Act-It is essential for organization to ensure that employees health should not
be affected by work. Employment protection Act-According to this law the enterprise must provide
written contract of employment to employees (Hooghe, 2017)
It eliminates unfair dismissal practices. Equal pay act-This law states the workers must be
given equal treatment at workplace., Competition Law-The purpose of this law is to ensure that fair
competition in industry should take place. sales and good act-This law states that organization should
produce and sell good quality products. Trade description Act-product and services should be same as

advertised by business (Milman, 2017).
The essential origin of several laws in English legal system are:
Common Law-These norms are designed by the magistrate in the tribunal on the basis of the decision
made in the existing law case. According to the hierarchical structure of the English legal system, the
decision taken by the judge in high court is binding on the smaller tribunals in the nation. Common
law is defined as a body of legal regulation which have been created by tribunal as they issue rulings
on cases, as opposed to rules and legislation formulated by the legislature or in official statutes.
Statutory Law-These legislation are developed by the action of parliament. This is considered to be as
a conventional law which control or govern state, city and country. The purpose of statues is to restrict
unfair commercial practices in the nation. These laws are germinated from the decisions made by judge
in the court on the basis of judgment made in existing legal proceedings and with the constitutional
legislation. These laws are specifically supported by the written constitution of the country. After law
has been planned it begins life as a bill, passes different readings in both the House of Commons and
the House of Lords before receiving Royal Assent and becoming legislation.
European legal system-Before the Brexit the UK was the member of European Union. So the business
activities in UK are governed as well as controlled by legislation formulate by EU government. A
directive is a judicial act of the European Union, which request or demand member states to achieve a
specific outcome without prescribing the means of achieving that outcome.
European Convention of Human right- It is also known a convention for the protection of human
right and fundamental freedoms is being formulated in order to protect human rights and fundamental
freedom in UK. This law was formulated by Council of Europe (Kraakman, Hertig and Pargendler,
2017). In English legislative system there are several norms which are developed by the legal
authorities in European Union. Such as Convention of human rights-These laws have been designed by
the European union. Convention of human rights-These laws have been designed by the European
union. Some legislation in English legal system are influenced by the EU laws.
P2 Role of government in law making and the way statutory common law is applied Explaining in
justice courts
The following are the role of government in law making:
An issue or problem emerges on the government plan-The role of UK government is to identify
the problems and formulate the plan by analyzing various effective solution. Unexpected having such
as act of terrorism, natural disaster requires quick response this is provided by government.
Idea for pointing an issue are considered-The UK government. The problems and issues can be
raised from various sources the legal authorities are expected to develop policies on various issues such
as taxation, health and safety etc.
Interested stakeholders and groups are consulted- It is the role of government to design and
present their proposal to expert, interested stakeholders that are likely to be affected by the policies.
The UK government after designing and implementing various policies and plan seek to obtain public

feedback (Milman, 2017)
The role of legal authority is to demonstrate their intention before implementing any law.
Cabinet minister must agree with proposal -The government ministry intends to seek support from their
colleagues in order to implement law. The benefit of policies and laws are debated in front of cabinets
ministry in order to get their approval for implementing legislation (Kraakman, Hertig and Pargendler,
2017).After the approval of proposal by committee ,it is required to be approved by other authority that
are accountable for organizing government programs. Then the final decision is made by legislation
committee regarding presentation of proposal in parliament.
Proposals are then converted into bills-After the proposal is consulted and approved by cabinet,
the government is accountable for drawing the content of the bill.
Common law has no basis in statute, and is accepted and formulated through written opinions of
Judges delivered at the end of a trial. These declarations are binding on future decisions of lower courts
in the same jurisdiction. Common law is applied by judiciary during trials. These regulation will then
be applied in future cases under the doctrine of stare decisis, another name for judicial precedent.
M1 Evaluate the effectiveness of legal system in terms of recent reforms and developments
Law and reforms can play significant role in Economic development of country. Various
policies and laws framed by legal authority has great influence on business environment as well as it
has great impact on various factors such as social, economic, technological and factors (Pollack, 2017).
It has been identified that Parliamentary system in United Kingdom has not developed. As Far as civil
law in UK is concerned the minister of justice is heavily burdened with many responsibilities including
laws and reform. Overall planning of reform is complicated process. The Purpose of English
legislation is to bring large economical stabilization, social control and reducing the chances of
fluctuations in prices of goods or services. Due to the improvement the focus of these laws has change
to the rule of the game of society. This regulation of game consists of legal norms. The new program
me includes legal reforms which is supported by the notions that legal association plays important role
in the improvement or growth of the nation.
TASK 2
P3 1. Factors that are required to be considered when naming company
Before incorporating the company in UK Collin and David is required to incorporate their
company under companies Act. It is essential for director of company to file certain documents. They
are required to present the detail of organization such as nature of business, business activities etc.

Name of organization should be carefully considered before registering with company’s house .
The name of firm should be such that it should represent the purpose of business. While choosing the
name of organization David and Colin should considered that the brand name should assist them in
building their goodwill in UK market. They should consider that once they succeed, their company
name can become valuable assets (Thompson, 2017). David and Collin can select unique and short
name as these can be easily recognized and remembered. Such names would help them to promote their
brand and establish good market position. Unique and distinct name will allow organization to gain
competitive advantage in market. The organization name should not be similar to the name of existing
company. The name of the enterprise must end with “limited companies (Fingleton, Fletcher and et.al,
2017). If the business unit is established in Wales.Certain types of characters, signs, symbols and
punctuation are not permitted. If name of business entity contains any type of sensitive words or
expression it requires the permission of legal authority. Offensive words should be avoided or
eliminated. It is very significant for owner to ensure that name they have selected by them for their
organization has not been be registered by another enterprise and it is permitted by Companies house.
M2 Differentiating and analyzing the potential impact of regulations, legislation and standards.
The regulation has great impact on various cost that has been incurred by business unit. It has
great effect on various benefits and opportunities that are gained by organization from external business
environment. On the other hand, legislation has great effect on business activities. While standards
have great impact on society as on manufacturing industries. The purpose of establishing various
standard is to encourage people to raise their living standard and forcing manufacturing industries to
produce good quality of products and services (Jones, 2017).
Legislation has great impact on whole country. Legislation plays significant role in economic
development of country. Regulation and legislation both laws intend to prevent various unfair trade
practices in the country. Standard has great impact on the economy of the country and it has effect on
the profit of business. It assists business entity in attracting more number of customer and generating
profit (Fingleton, Fletcher and et.al, 2017).
On the other hand regulation support firm in sustaining their business for long period of time
and enable them to explore various opportunities. Standards also motivates them to produce innovative
goods and services. Whereas legislation has great effect on business environment. As it ensures fair
competition among industries

P3 2. Employment Rights
Under Employment Act Sophia has right to ask for a valid reason from her employer. It is
essential for her employer to give justifiable reason. It is extremely unfair for an employer to terminate
any employees regardless for having illness. Sophia has right to visit employment tribunal for fair
judgment. Employment Tribunal will identify thee reasonableness of employer’s decision regarding
termination of Sophia. She has right to ask for written notice from her employer giving specified and
valid reason for dismissal (Thompson, 2017). It is essential for employer to provide dismissal notice
within 14 days, if he fails to do so then she has the right to claim damages and compensation for wrong
dismissal. In case employers fails to provide compensation to her then she has the power to claim in
ordinary civil court for breach of contract. She can also make claim under unfair dismissal. It is
required by her to identify which remedy she want to gain whether she want compensation, re
internment, re engagement etc. She has right to be accompanied to disciplinary and grievance hearing.
This is the provision for worker to be accompanied by coworker or a trade union. She has right to be
supported by trade union or co-workers. If she has worked in company for more than two years she is
entitled to claim redundancy payment.
P3 Right and obligation of consumer under Consumer Act
The rights and obligation of Mrs. Khan:
As it is analyses from given case study that service provider has not provided her with truthful or
specification about automobile parts she has right to get compensation. If she faces any problem
regarding service purchased she has right to contact immediately to service provider for providing a
solution (Hooghe, 2017). It is very essential for her to keep all the bills of purchase as a proof in order
to get solution regarding particular problem.
Besides rights she has various obligations as a consumer. She has duty to get confirmation about
parts that will be used in her car. It is her duty to maintain her car and provide full payment for services
that are provided by services' provider. If product or any part of car get damaged due to her negligence
or failure in complying with service provider instruction in such case service provider is not liable for
any consequences. It is her duty to hear the full information and follow instruction that are given by
service provider.
TASK 3
P4 Termination of contract, recuse from insolvency and liquidation.
AS it has been identified from above given case that the reason for termination of contract was

unsatisfactory performance by Prestige Home Building limited. IN above case both the parties have
opportunity to formally renegotiate the contract by making little changes in agreement. These two
parties can mutually find solution to the problems (Hooghe, 2017).
Advice to Mr singh: In above situation the aggrieved party that is Mr. sigh can give PHB
company an opportunity to perform their duties as per the contract.. Both parties can develop formal
relationship with each other. As formal relationship includes greater notice of termination. Financial
loses can be compensate by aggrieved party to defaulting party. If in case aggrieved chooses to sustain
the contract it is significant for Mrs. Singh to communicate her affirmation to defaulting party. It is
required by Mrs. Singh to facilitate or establish strict deadlines for defaulting party in order to fulfill
their obligations. Mr sing has right the right to claim damages for breach (Fingleton, Fletcher and et.al,
2017). It is very significant for aggrieved party that is Mr.sing to set specific time for contract and to
reasonable time to defaulting party to fulfill their obligation and task. In Given case scenario, As the
Phb has failed to perform their duties as well as responsibilities as per the terms and condition in the
contract there an organization is not entitled to get payment.
Rescue from insolvency and liquidation- It is required by entrepreneur to identify expert for
finding various solution to prevent or rescue from insolvency. Owner or manager of
organization is needed to analyses in order to determine the major cause of financial difficulties.
It is very essential for manager to suggest suitable strategy that aid enterprise in preventing
insolvency (Kraakman, Hertig and Pargendler, 2017). The business entity can seek financial
support from industry in which they are operating. Financial department in business unit can
help firm in identifying improving area and determining suitable sources for obtaining funds for
improving performance. Depth analyses can aid aids company that is facing such situation. It is
very essential for business to have control on cash flows. Business debt restructuring and
negotiating with creditors can support firm in eliminating or rescuing insolvency. The
organization can also use its assets in order to rescue company from insolvency. If the company
faces situation of liquidation it can present its assets to its creditor in to get rescue from winding
up. The other option is the organization can voluntary arrange financial resources. The
suggestion that Samantha can provide to organization facing the situation of insolvency that
cited venture can plan to form joint venture with financially stable company dealing in same
industry. Another legal advice is merger, amalgamation ,with other companies operating in same
Sector. Other recommendation is that an organization should close and sold business to other.
After with the money , entrepreneur can plan to open new business venture. Legal solution to

business venture is that the company should repay it debts before closure. An organization can
utilize or sell its assets for making .In given case scenario, it is required by the Samantha to
enforce the insolvency act. As this strategy will help Samantha in making public as well as other
stakeholders about the company insolvency and winding. Insolvency Act 1986 (Insolvency Act).
It is one of the methods by which other types of insolvency processes may be avoided or
supplemented.
P5 Validation for use of appropriate legal solutions in both above cases
The various solution provided in case of Mrs. Singh is justifiable, defaulting party is provided
an opportunity to perform their duty. This also has enabled aggrieved party to get work done according
to contract and enabled them to maintain healthy relationship with other party. Various solution has
allowed both parties to renegotiate contact by making little changes in it. Mrs singh is has been
recommended that she should be consider various factors and include various elements such as time is
completion of contract, obligation of defaulter party, consequences of breach of contact etc
(Kraakman, Hertig and Pargendler, 2017). These all constituent will help Mrs. Singh in eliminating
breach of contract and assist them in getting their work done on time. This plan will assist other party
in preventing themselves from legal obligations. The solution has encouraged PHB ltd to maintain
formal relationship with Mrs. Singh as this will allow them to gain another opportunity for performing
their task. The negative point is that the interest and benefit of aggrieved party has not been considered.
Solution is considered effective when interest and benefit of both the parties are considered.
Mr sing will not have to suffer additional losses and cost which is involved in searching as well
as entering into a new contract with another builder. Another legal advice given to Mr sigh is that when
entering into a new contract he should clearly specify the time as well as consequences of failure to
comply with terms in contract. As this will assist both the parties in get rid of legal issues and it will
help in getting the project completed on time.
While in case of Busy bee’s ltd various solution has supported firm in rescuing from insolvency
and liquidation. Various solution and ways has been suggested which can be provided be used by
organization in order to prevent or eliminate such situation. It has been identified that Busy bees is
required to have control on its cash follow in order to rescues from such unfavorable condition. The
above solution has supported Busy Bee in identifying main stakeholders that can assist business entity
in overcoming or preventing financial crisis. It has been recommended that manager in Busy Bee
company is required to frame effective plan and strategy in order to provide quick response to various
business problems. Various options and methods has been suggested which can be adopted by
organization for raising funds. This will aid firm in dealing with financial crisis. The negative point of
the solution is that it has encouraged firm to seek supports from others besides facing business problem

independently. The above provided solution is effective as this will help organization in eliminating
further legal issues in the future. It has been advised to manager in an enterprise that he should appoint
liquidator for distributing assets to creditors. As this will assist an enterprise in ensuring effective as
well as efficient usage of financial resources which further can be used for starting up of new
company.
It has been recommended to the Phb limited that an organization is that it should not sue Mr
Singh .As this factor will have negative effect on their relationship. Both the parties can facilitate
negotiation with each other. As this activity will help them in reaching to the appropriate solution. Mr
singh as well as Phb can use arbitration method for resolving their disputes. Arbitration is considered to
be an effective solution as it helps in solving the problems. This method also helps parties in ensuring
fair decision.
In context of liquidation of company enforcement of liquidation act 1986 has been suggested to
Samantha, as it helps in avoiding other legal issues.
M3 Positive as well as negative effect of legal solution on business
Legal solutions renders organization a chance to determine appropriate or effective solutions to
the several issues in the business. It assists manager in keeping themselves update with the latest
employment as well Health and Safety laws. Legal advice support manager in recognizing the
appropriate techniques or strategies which can be utilized by business entity for eliminating same
business issues in the future.
Di advantage :
Few of the legal advice such as going to the court, filing law suits , conducting negotiation etc.
may have counter impact on business decisions as well as operations. Seeking a legal advice and
implementing the same may be time and cost consuming activity or procedure which further may have
negative effect on the financial performance as well as stability of business.
TASK 4
P6 Advising AFG Oil Organisation about their legal rights to resolve the dispute at Arbitration
It is very essential for organization to include arbitration provision at the time of entering into a
contract with international firm. As this will help business entity in eliminating various disputes related
to place of arbitration. Enterprise that is facing such problem related to arbitration has right to appoint
international arbitrator for resolving business conflicts. AFG company has right to present case in front
of international arbitrator (Fingleton, Fletcher and et.al, 2017). The business can make certain rule and
principles regarding solving various disputes. companies have right to choose place of arbitration. The
enterprise has right to decide whether to appoint international arbitrator or not. Advantage of selecting
international arbitrator is that the conflict can be resolved by single tribunal. AFG oil company has
right to gain knowledge about various clauses related arbitration. The organization has the option to

adopt alternative dispute mechanism procedures. This method includes various methods that used for
resolving dispute related to arbitration. The most common method is mediation and another option are
conciliation. Both methods include appointment of third neutral party to motivate and help parties in
identifying effective solution to the problem. The company has right to identify the matter of dispute. It
is the right of parties to enter into a separate arbitration agreement
Arbitration is less formal process that court. Through this procedure the AFG company and
other party can appear at hearing. AFG oil company has the right to present their evidence and has right
to raise question on each other witnesses. Besides all these right the organization has right to choose
best dispute mechanism procedure (Fingleton, Fletcher and et.al, 2017).
M4 Contrasting the effectiveness of these recommendations.
The solution or suggestion given to the AFG company is effective as this will support business
entity in developing the understanding about their legal rights which they can execute during the
process of resolving disputes. It will also help firm in identifying the appropriate method for resolving
commercial conflicts. The suggestion of appointing Solicitor or seeking legal advice from them is
effective, as this will assist an enterprise in identifying the appropriate solution to business problems.
CONCLUSION
It has been concluded from the report that study law is very much helpful for those
organizations who are planning to open their branches or expanding their business in UK.
This report will be useful for those individuals who are planning to establish their organization
in UK. The project has successfully described all the laws that are prevailing in the country. It has
concluded that government plays very significant role in law making process. The assignment has
demonstrated the effectiveness of various solution with regards to all above mention cases. It has
explained various laws that are to be followed by organization while operating their business operation
in UK. It has been concluded that various laws, standards and various policies have great impact on
business activities.
The report has suggested various solution that can be used by MRs, Singh for resolving problem
related to breach of contract. She has been recommended that she should consider various factors while
reentering the contract with PHB ltd. In another case Busy Bee has been provided with various
methods that can help firm in preventing various unfavorable situation,

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